Shares of Paytm slip over 7% in trade to hit a low of Rs 386 against its previous close of Rs 422 after Macquarie downgraded the stock to Underperform, slashing the target price to Rs 275, the lowest amongst all other brokerages. As of 9:20 AM, shares of Paytm were down 4.38% at Rs 403.70 on the NSE. The Paytm’s stock has delivered a negative return of 40% in the last one month after the RBI crackdown.
Macquarie in its latest note said that post the recent diktats, Paytm faces a serious risk of customer exodus which significantly jeopardises its monetisation and business model. They have further increased their loss estimates by 140% for FY25e and 40% for FY26e, factoring 60-65% decline in revenues due to lower payments and distribution revenues.
On Monday evening, the RBI governor in a joint press conference with the Finance Ministry had also said that there is no room to review the deadline or decision taken on Paytm.
